skip to main content



What Income Can You Include on a Mortgage Application?

April 26, 2022

couple reading the Mortgage Loan Income Requirements

One of the essential parts of an application is the mortgage loan income requirements in the income section. Not only is listing what income you make – but also ensuring it’s calculated correctly is a top priority. Sometimes, it gets a bit complicated. And that’s where you’ll need an experienced loan officer from Homestead Financial Mortgage to help you. Read on to see what you can and can’t include.

Can I Include Spouse Income on Mortgage Application?

Yes. You can apply jointly with your spouse as the co-applicant. Then, both your income and credit history will be considered. If your spouse doesn’t have good credit and you make enough money, you might consider applying by yourself. Your loan officer can run both scenarios. They can also answer any questions you have about mortgage loan income requirements.

Here’s another common question – Can I include spousal income if the mortgage is in my name only? If you apply alone – the lender will only use your income.

Can You Include Rental Income in Mortgage Application?

Generally, yes – you can include rental income if you provide documentation, including rental agreements and tax documents. If it’s a new property you’re purchasing to rent out, you can use the rent schedule from the appraisal to offset the mortgage payment for qualifying purposes.

On the other hand, boarders in your own home aren’t normally accepted.

Are Tips Included in Income Used for Mortgage Application?

Yes, if you claim the tips on your taxes. If you don’t – you’re out of luck. It doesn’t work to avoid taxes but then try to count the tips as income. Counting tips are just like counting any other type of income. You have to show proof and also that the source will continue.

Can Overtime Be Used in Mortgage Applications?

Yes, if you’ve had a stable two-year history, you can document the overtime. In some professions like firefighters or EMTs, determining income can get complicated. That’s where a Homestead Financial Mortgage loan officer can help.

Does Unemployment Count as Income When Applying for a Mortgage

Even though unemployment counts for tax purposes, in most cases, it doesn’t count as income when applying for a mortgage. There is an exception for seasonal employment (for example, construction). You can count it when unemployment has been received and documented for the last two years.

Can Child Support Count as Income for a Mortgage?

Yes, it can as long as it’s been received for at least six months. And just like other sources of income – child support needs to be documented. You’ll need to show that it will be paid for at least three more years from the mortgage application date. You’ll also need a copy of the divorce decree or a separate agreement if the divorce isn’t final. The same rules apply to alimony and separate maintenance.

calculating income for a mortgage loan

When it comes to income, the main point to keep in mind is that you need to be able to document the payment and show it will continue.

Homestead Financial Mortgage Can Help You Document Your Income

Sometimes knowing what income counts and how to document it can be confusing. That’s why we’re here to help.

Whether you have a job or are self-employed, the team at Homestead makes documenting income easier for our borrowers. Our low-interest home loans are some of the best in the states we serve. We’re licensed in Arkansas, Colorado, Florida, Illinois, Indiana, Kansas, Kentucky, Missouri, Montana, Ohio, Oklahoma, Tennessee, Texas, and Wisconsin.

Contact us today.

"By being open and recognizing our strengths and weaknesses, we can see opportunities for growth and ways to help each other."

- Jayson Hardie on Growth

Get a Free Quote →